Firsthand Technology Value Fund, Inc. SEC 10-Q Report

Firsthand Technology Value Fund, Inc., a business development company focused on technology and cleantech investments, has released its Form 10-Q for the second quarter of 2025. The report highlights significant financial and operational metrics, reflecting the company's performance and strategic direction in the rapidly evolving tech and cleantech sectors.

Financial Highlights

Total Investment Income: The company reported a total investment income of $170,861 for the three months ended June 30, 2025, a substantial increase from $29,956 for the same period in 2024. This growth is primarily attributed to higher unaffiliated interest income.

Total Net Expenses: Total net expenses rose to $234,035 for the three months ended June 30, 2025, compared to $208,767 for the same period in 2024. The increase is mainly due to higher professional fees and other expenses.

Net Investment Income/(Loss): The company reported a net investment loss of $(63,174) for the three months ended June 30, 2025, an improvement from the net investment loss of $(178,811) for the same period in 2024.

Net Realized and Unrealized Gains (Losses) on Investments: The company experienced net realized and unrealized losses on investments amounting to $(26,788) for the three months ended June 30, 2025, compared to gains of $1,028,811 for the same period in 2024.

Net Increase (Decrease) In Net Assets Resulting From Operations: There was a net decrease in net assets resulting from operations of $(89,962) for the three months ended June 30, 2025, compared to an increase of $850,000 for the same period in 2024.

Net Increase (Decrease) In Net Assets Per Share Resulting From Operations: The net decrease in net assets per share resulting from operations was $(0.01) for the three months ended June 30, 2025, compared to an increase of $0.12 for the same period in 2024.

Business Highlights

Investment Focus: Firsthand Technology Value Fund, Inc. primarily invests in technology and cleantech companies, focusing on those deriving at least 50% of their revenues from information technology or cleantech sectors. This includes companies in computer hardware, software, telecommunications, networking, Internet, and consumer electronics.

Portfolio Composition: The portfolio is mainly composed of equity and equity derivative securities of technology and cleantech companies, with investment sizes generally ranging between $1 million and $10 million.

Operational Strategy: The company aims to invest at least 70% of its total assets in privately held companies and public companies with market capitalizations of less than $250 million.

Regulatory Compliance: As a business development company (BDC), Firsthand Technology Value Fund, Inc. is required to invest at least 70% of its total assets in qualifying assets, including securities of private or micro-cap public U.S. companies, cash, cash equivalents, U.S. government securities, and high-quality debt investments that mature in one year or less.

Future Outlook: The company is focused on seeking long-term growth of capital, principally by seeking capital gains on its equity and equity-related investments. It plans to continue investing in technology and cleantech sectors, leveraging its expertise in these areas.

Market Risks: The company acknowledges the potential impact of global economic conditions, including inflation, elevated interest rates, and geopolitical events, on its portfolio companies and overall business operations.

Investment Management: Firsthand Capital Management, Inc. serves as the investment adviser, managing the investment process on a daily basis and ensuring compliance with regulatory requirements.

Valuation Process: The company employs a multi-step valuation process for investments without readily available market quotations, involving the Advisor’s Valuation Committee and independent valuation firms to ensure fair value determinations.

Geopolitical and Market Disruption Risks: The company is aware of the risks posed by geopolitical conflicts, natural disasters, pandemics, and other market disruptions, which could adversely impact the value of its portfolio.

SEC Filing: Firsthand Technology Value Fund, Inc. [ SVVC ] - 10-Q - Aug. 14, 2025